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http://www.cbc.ca/news/business/ ... s-rigging-1.3236548: c5 a# U6 n' i f
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Volkswagen shares plunge on emissions rigging scandal, m, q! W3 j0 }, e( U6 x
; m- H* h' V' X% [# SVolkswagen's CEO apologized but investors were not in a forgiving mood as the company's stock plunged almost 20 per cent Monday following revelations late last week that the automaker had rigged emissions tests for almost 500,000 diesel cars in the U.S.6 u* {& k& J* B& {" ~
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"I personally am deeply sorry that we have broken the trust of our customers and the public," Martin Winterkorn said in a weekend statement.
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VW intentionally violated clean air standards, U.S. EPA says
2 Z$ @* Q8 f3 p& w) s) x5 ROn Friday, the U.S. Environmental Protection Agency (EPA) revealed that half a million diesel-powered VWs had been programmed to bypass emission controls except during emissions tests. The cars include the Audi A3, VW Jetta, Beetle, Golf and Passat models made in the last seven years. 8 j8 S$ y9 M8 F
3 @ _* }8 q/ R6 R# y" VThe EPA ordered VW to fix the cars and VW said it would co-operate with regulators. But the damage to the automaker's image is nothing less than catastrophic.
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" X2 O; h/ X4 a6 NVW had marketed its diesel-powered cars as being better for the environment. The Associated Press reports, citing an anonymous source with knowledge of the matter, that VW has told dealers to stop selling its 2015 diesel cars with 2.0-litre engines.
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The EPA said the VW cars under investigation seemed to pass emissions tests, but in the real world, were actually emitting up to 40 times the national standard for nitrogen oxide, which is linked to asthma and lung illnesses. ! j+ C5 J1 P' W, ]
: T8 G7 P6 Q8 l- m' D8 VConsumer Reports announced it would remove its "recommended" rating from the Jetta and Passat diesels until it can retest the vehicles. $ b9 T* E9 g4 Y$ x6 ?5 Q' X: f6 P
) j7 u& |" y: iVW could face fines of up to $18 billion US, according to the EPA. 2 `# Q: I/ W: ^2 }$ `) b
' g; n( M5 ~0 k M# |- xGermany Volkswagen
. x- I* I0 z; _8 N* {' `* ~9 c/ Z0 qA Volkswagen Jetta TDI diesel engine is displayed at the Los Angeles Auto Show in 2008. Around $21 billion was wiped off the market value of Volkswagen AG on Monday, following revelations that the German carmaker rigged U.S. emissions tests for about 500,000 diesel cars. (Damian Dovarganes/Associated Press)
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0 ]9 u" ^5 q% P* ?* b7 zVolkswagen shares plunged 19.4 per cent in Monday trading in Germany, chopping $21 billion Cdn from the market value of the company.
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: u/ X% G% M2 y+ u. ?"The company will have to recall nearly 500,000 affected cars, which will cost it millions of dollars, and that's even before the damage to its brand and potential fines," said Michael Hewson, chief market analyst at CMC Markets., P, A! @# L; q7 M) N
7 I) R9 d1 f, q! Q* x. Y* t3 aDiesel-powered models account for about a quarter of VW's sales.# _( z- h9 p* O# b6 o. x
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Impact in Canada unclear3 M: Y G" @" w' g8 n s
# Y; x4 n4 _% CAt this point, it isn't clear what the revelations mean for owners of VW diesels in Canada. Volkswagen Canada told CBC News on Friday that it first learned of the EPA action earlier that morning. It said it would co-operate with Environment Canada "to understand the implications for the Canadian market and what actions, if any, may be required in Canada."
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Environment Canada, for its part, said it was in talks with the EPA "to further examine this issue and assess potential implications for Canada."
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/ ~- Y# z$ o4 g" dEnvironment Canada also said it collaborates on emissions verification activities with the U.S. EPA "to ensure our common environmental outcomes are achieved," and pointed out that its emissions standards are aligned with U.S. standards. " N, Q% B& N V. B
6 G0 e/ V! A! t6 gThe EPA and Environment Canada both stressed that the effectiveness of a vehicle's air pollutant control devices is not a safety issue. The cars remain legal to drive. |
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